Canada's main stock index opened lower on Thursday, as weak earnings reports from banks more than offset gains in energy companies.
The TSX Composite Index dropped 53.85 points to commence business Thursday at 16,843.49
The Canadian dollar added 0.08 cents to 75.88 cents U.S.
TD Bank Group reported a 3.5% fall in fourth-quarter profit on Thursday, as Canada's second-biggest lender by market value was hurt by higher provisions for loan losses and a restructuring charge.
TD shares plunged $2.42, or 3.2%, to $73.25.
Canadian Imperial Bank of Commerce reported quarterly profit that fell short of analysts' estimates, hurt by higher provision for bad loans and slower growth at its domestic banking business. CIBC shares tumbled $5.96, or 5.2%, to $108.87.
Canaccord Genuity raised the target price on National to $72.50 from $68.50. National Bank shares squeezed ahead six cents to $72.30
Scotiabank cut the target price on Royal Bank of Canada to $114 from $117. Royal shares docked $1.33, or 1.3%, to $103.62.
National Bank of Canada cut the target price on Dollarama to $51.00 from $52.00. Dollarama fell 15 cents to $44.55.
On the economic slate, Statistics Canada said this country’s exports rose 0.8% in October, while imports increased 0.5%. As a result, Canada's merchandise trade deficit with the world narrowed slightly from $1.2 billion in September to $1.1 billion in October.
Moreover, Western University’s IVEY Purchasing Managers Index soared to 60.0 in November, towering over October's 48.2 reading, and even surpassing the 57.2 number recorded in November 2018
ON BAYSTREET
The TSX Venture Exchange pointed downward 1.01 points to 538.69
Toronto’s 12 subgroups were evenly divided in Thursday’s first hour. Financials shaved off 1%, while utilities dipped 0.4%, and consumer discretionary stocks fell 0.3%.
The half-dozen gainers were led by consumer staples, up 0.5%, gold, 0.3% brighter, and real-estate, climbing 0.2%.
ON WALLSTREET
Stocks were little changed on Thursday as investors digested strong employment data while monitoring U.S.-China trade negotiations.
The Dow Jones Industrials deleted 52.06 points, at Thursday’s open, to 27,597.72
The S&P 500 lost 4.75 points to 3,108.01
The NASDAQ sank 16.07 points to 8,550.60
Kroger Company and Brown Forman are among the companies reporting earnings Thursday.
The Labor Department said U.S. weekly jobless claims dropped 203,000 last week, below an estimate of 215,000.
The report quelled fears stemming from a disappointing private payrolls number released Wednesday. It also comes a day before the government’s monthly non-farm payrolls report.
The U.S. trade deficit tumbled to 7.6% to $47.2 billion in October, a one-and-a-half-year low as imports dropped by $4.3 billion.
Bloomberg News reported Wednesday, citing sources, that both the U.S. and China were inching closer to securing an agreement on the amount of tariffs that would be rolled back in a limited trade deal. President Donald Trump also said Wednesday that he believed trade talks with Beijing were going "very well."
The report, along with Trump’s comment lifted sentiment around trade and helped the major averages snap a three-day losing streak. It also helped the market recover some of the steep losses from the month’s first two trading days
China and the U.S. have 10 days to reach a trade deal before additional U.S. tariffs on Chinese goods take effect. Those levies would target an additional $156 billion in Chinese goods.
Prices for the 10-Year U.S. Treasury sagged, raising yields to 1.81% from Wednesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices gained 13 cents at $58.56 U.S. a barrel.
Gold prices picked up three dollars to $1,483.20 U.S. an ounce.
